Economists propose OECD countries pay Global South individuals for climate damage
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Mains·
Climate Justice and international climate finance: a GS3 and Ethics case study on reparations.
Why in news
Economists Michael Greenstone, Abhijit Banerjee, and Esther Duflo proposed a model where OECD countries pay individuals in the Global South directly for climate damage caused by their emissions
Background
The proposal, detailed in the book 'Just Economics', suggests direct-to-individual payments rather than government transfers. It highlights that 82% of future emissions are projected to come from outside the OECD, making moral appeals for climate finance less effective.
Facts for Prelims
- BodyOECD: Organisation for Economic Co-operation and Development, a grouping of mostly wealthy, industrialised countries.
- Fact82% of future emissions are projected to be outside the OECD.
- PlaceSurat: Site of a 99% compliant market trial of 150 textile plants for emissions trading.
- PostMichael Greenstone: Director of the Energy Policy Institute at the University of Chicago.
Prelims practice question
With reference to the climate reparations proposal and emissions data, consider the following statements:
- The proposal suggests direct-to-individual payments rather than government transfers.
- Surat hosted a market trial of 150 textile plants for emissions trading.
- Approximately 82% of future emissions are projected to come from inside the OECD.
Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)1 and 2 only
- (d)1 and 3 only
Show answer
Answer: (c) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The note states 82% of future emissions are projected to come from outside the OECD.
For Mains
Q. Examine the feasibility of direct-to-individual climate reparations from the Global North to the Global South as a mechanism for climate justice.
Dimensions to cover in your answer
- Distributional equity: Direct individual payments vs. state-led infrastructure investment for climate resilience.
- Regulatory conditionality: Linking climate finance to the mandatory adoption of carbon pricing mechanisms in developing economies.
- Measurement challenges: Difficulty in quantifying specific carbon-induced damage per capita for diverse geographical regions.
Keywords: Climate Justice · Carbon Pricing · Global South · Climate Finance · Market-based Solutions · Reparations
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.